You Can Manufacture a Product in the US and Transfer

Multiple Choice

You can manufacture a product in the US and transfer it to Europe. In the MC = $3 per unit, and the market price in Europe is $5 per unit. Should you manufacture the unit or not?

A) Yes, the total net gain is $5 from selling in Europe.
B) No, MC of $3 has to be forgone.
C) No, the net receipt of $3 is the same as the MC in the US.
D) Yes, the net receipts in Europe exceed MC in the US.